Housing project fails to take off, consumer forum directs builder to refund money
In 2014, the builder had floated a residential enclave scheme in Sector 66, Noida, but could not give possession as the project was shelved. Investors were finding difficult to get a refund.
The district consumer disputes redressal forum has directed a builder to refund the amount collected from four investors along with 18% interest after the builder failed to deliver the flats booked by them.
The builder has also been asked to give compensation towards physical and mental agony caused to buyers and legal expenses incurred by them.
In 2014, the builder had floated a residential enclave scheme in Sector 66, Noida, but could not give possession as the project was shelved. Investors were finding difficult to get a refund. In four such complaints filed by the investors, the consumer forum has directed the builder to refund the amount.
Jaya Sharma, a resident of Sector 55, had in April 2014 booked a one-room apartment. The price of the flat agreed upon was ₹7.9 lakh. The booking amount of ₹10,000 and registration amount of ₹1.4 lakh was paid for the 26 square foot apartment on the fifth floor. The buyer then paid a total of ₹5 lakh and the balance was to be paid on getting possession. An agreement to sale was registered on August 13, 2014, and possession was to be given by December 2015.
Rukmina Singh, a resident of Khoda Colony, had booked a two-room apartment for ₹18 lakh and had paid ₹6.61 lakh.
Ajay Singh, another resident of Khoda Colony, had booed a one-room apartment for ₹6 lakh and had paid ₹3 lakh.
Nisha Singh, a resident of Sector 37, Noida, had booked a one-room flat for ₹5 lakh and had paid the full amount.
The variation in the prices of the one-room flats was owing to the size and the floor on which they were located.
All these investors found that there was neither any structure coming up nor any construction work going on when they went to the site to see the progress on their flats. The builder told them that owing to some problems, the project could not take off and promised to allot them another apartment in another project. When they demanded a refund, the builder refused their demand.
In one instance, he had given a cheque for the refund but that bounced as there were no funds in the builder’s account. Thereafter, these four investors filed separate applications at the district consumer forum.
“The forum sent several reminders to the builder seeking his reply but no one turned up. The forum then decided these cases ex parte separately and directed the builder to refund the deposited amount along with 8% annual simple interest. Besides that, the forum also awarded ₹20,000 towards physical and mental sufferings and ₹2,000 towards legal expenses,” Jagdish Singh, president, district consumers forum advocates welfare association, said on Wednesday.